UPI 2.0 : More flexible, Great features and Wider Reach

Updated On October 9, 2018

The UPI (unified payment interface) would become more advanced. The NPCI is working on UPI 2.0 which would be more comprehensive and secure. The NPCI chairman Mr A P Hota told to the Mint that UPI would disrupt the non-cash transaction space. The next version of UPI would have more features and easy authentication.

As you know that the UPI is the best non-cash payment system. It works on the smartphone and based on the mobile numbers. Using UPI, you can immediately transfer money without any charge. This payment system does not require the bank account number of the payee to transfer the money.

The UPI is a payment system developed by the NPCI. The UPI enabled banks can use this system in their apps. Once UPI is integrated into the apps, a user can easily transfer money to any person very easily. There are many benefits of UPI over the existing system of payments.

Moreover, the UPI would be even better since early 2017. It will have following features.

Upcoming Features of UPI

Bill Payment

As of now, you use UPI system to transfer money to a person who has the bank account. But, In the next version of UPI, the utility bill payment would be also available through the UPI. You can pay for telephone, mobile, electricity, insurance, and credit cards to settle his dues, anywhere, anytime. In fact, two banks would launch the UPI-based bill payment system very soon. For the bill payment, the UPI would integrate the Bharat Bill payment system with it. This bill payment system can be also used for EMI collection.

Pre-Authorized Transaction

Often you forget to pay the bills. The UPI would also resolve this problem. It would come with the pre-authorized transaction. In this case, You can authorize certain billers to draw the billed amount automatically before the due date. It would make you stress-free about the bill payments. You can also limit such automatic payment. You would have the option to limit the maximum amount and applicable date. This system would also work for EMI payments.

Biometric Authentication

Do you enjoy the fingerprint scanner of your smartphone? It has eased the unlocking of the smartphone. Same technology would be used for the UPI payments. The fingerprint scanner and iris scanner would be used for the UPI payment authentication. To give this facility, the UPI would use the services of Aadhaar. Remember, during the Aadhaar registration, your fingerprint and iris were captured. This technology would work on the phones which can capture fingerprints or high-quality iris image. The biometric authentication would end the need of MPIN during UPI money transfer.

Also Read:Benefits of Aadhaar Enabled Payment System

Check on Speed of Transaction

Ther would be greater security with the UPI 2.0. The UPI is working to check the very fast UPI transaction as it would mean an automated transaction. This type of velocity check is used by some banks. The UPI would work on this aspect as well. If such a fast and suspicious transaction happens the UPI would alert the bank and customer, both.

The UPI is also working to limit the number of transaction in a day.

Error Resolve

The UPI gives an error if the same mobile number is linked to different people’s bank account. It is common that same mobile number is registered to the account of the father, mother and daughter. The UPI would resolve this problem in the next version of UPI.

Schedule Payment

As of now, you can’t schedule a payment using the UPI payment system. But the next version of UPI would also have this facility. It will give more flexibility to payers.

Aadhaar Based Payments

The UPI would also facilitate the payment using the Aadhaar number. Similar to the mobile number Aadhaar is also a unique number. No two person can have one Aadhaar. As it is already mapped with various bank accounts. The payment to the Aadhaar number would reflect into the bank account. You can see the payment option of Aadhaar, however, it is not active yet.

Existing Features of UPI

There are many unique features of UPI, you must be enjoying these. Here is a recap.

Two applications

There are two types of UPI-based application. The first application is person-to-person. It facilitates the money transfer between two persons. The second type of application is designed for e-commerce transactions. The online shopping companies can use this application

Real Time Fund Transfer

Unlike NEFT and RTGS, the UPI system transfers money immediately. It is always available. You can pay money any time irrespective of time or day. It works like existing IMPS based fund transfer. In fact, UPI is based on the IMPS fund transfer.

Collect Payment

The UPI gives the facility to ask for a payment. No other bank account based payment systems give this facility. Because of this system, it would be very easy to ask payment from the customers and borrowers.

Do you find UPI payments promising? Do you want to try the UPI-based apps? It is very easy, there are scores of UPI apps. You can use any of them irrespective of your bank. You can use the SBI UPI app for PNB bank account or ICICI UPI APP for the Bank of Baroda account. The HDFC UPI App can work for the axis or any other bank. There is a lot of flexibility. Just take a step.

Merchants can also earn cashback by using the BHIM app. This incentive scheme is available to all the merchants who takes payment through the BHIM platform. BHIM platform includes BHIM app, *99#, QR code and VPA. BHIM cashback scheme can give upto ₹300 in a month. The scheme is valid till 14 October. Now This scheme gives up to ₹1000 and it is valid till 31st March 2018 (Read: New Rules of BHIM Merchant Cashback Scheme)
In the BHIM merchant cashback scheme, you get at least ₹0.5 ₹2 per … [Continue Reading...] about BHIM App Cashback Scheme For Merchants

Google has launched 'Tez', its own UPI based payment app. Recently, Facebook's WhatsApp has shown a glimpse of UPI payments in its beta version. However, they removed it due to some unknown reasons. And now Google has jumped into the payments with its much-awaited Google Pay (Tez) app. However, due to a leak from the Indian finance ministry, the app was already in talks. The launch places Google ahead of Facebook in India at least in terms of a payment app.
Note that Sundar Pichai told that … [Continue Reading...] about Google Pay (Tez): A UPI based Payments App for Android and iOS